Nikkei Looks Alert
Nikkei seen trouble continued upward momentum as the outbreak of caution ahead of the release of the results of the ECB’s monetary policy tonight. Various media have reported that the ECB will announce the government bond purchase program-euro zone amounted to 50 billion euros per month until December 2016. However, the ECB’s Nowotny overnight warned investors that expects too high not only from one meeting alone. Nikkei futures are now trading at 17255; look away from high levels of daily 17 360.
From the corporate sector, Sony shares rose 1.5% after the Nikkei newspaper reported the company will launch an early retirement program to reduce the number of employees. Nissan Motor rose 0.5% after the release of a report that the company will move some production to Japan to take advantage of a weaker yen. Unicharm rallied 3.4% after the Nikkei newspaper reported Moony diaper manufacturers will record better financial performance due to strong sales in China.
Technically, the index on the trading session today, Thursday (01/22) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 17330 and 17380. If it fails at 17 270, then the next index is expected to tend to reexamine the level of support that is 17250 and continued until the possibility of being in the 17200 area.
Difficult Rally, Cross Rate Sterling Show Weakness
British Pound exchange rate movements in the forex trading Wednesday was observed to show the movement down. The currency opened in the range of 179.67 in early trading (0000 GMT) and then down around -204 pips or about -1.13% and the value of rolling observed in the range 177.62.
The negative sentiment against the British pound sterling exchange rate seems to increase after the Bank of England reported to the public that the composition of the sound at its board meeting Governor of the Bank of England gave a negative signal.
The development is indicated by a decrease in fundamental indicators MPC Official Bank Rate Votes which weakened to a 0-0-9 composition of the value of the previous period is 2-0-7. Unfavorable report showed lower performance than the estimated number of economists, who forecast will show the composition of 2-0-7. British Pound Currency observed to move down to respond to these developments.
Analyst suggests daily forex fundamental analysis Pound exchange rate normal range pair GBPUSD on Wednesday the support level at 177.68 and resistance level at 180.96.
Technically, today’s trading session on Thursday (01/22), pound sterling-dollar pair likely to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.5190 and 1.5250 maximum. Meanwhile, if the Pound was unable to break and stays below 1.5148 then another alternative scenario that Pound chance to test support in 1.5125 and 1.5080 area.
Strengthening ECB Stimulus Rumors Mute Gold
Gold lost some momentum in get it to stop the strengthening of the seven-day losing streak on Wednesday, unable to maintain penetration up $ 1.300 for the first time since August.
Gold for February delivery fell more than the previous highest level to go down 50 cents to end at $ 1,293.70 / onz after on Tuesday ended at the highest level in five months. Although on Wednesday weakened, the precious metal is still up about 9% this year until Wednesday.
Based on the report of Kitco News, news which shows that the European Central Bank proposes to buy government bonds of about 50 billion euros / month as part of its quantitative easing program has sparked profit-taking in gold.
Gold lately rally triggered by investors seeking safe assets amid ongoing problems in Ukraine, political uncertainty in Greece, turmoil triggered by the Swiss National Bank, and some buying at lower levels due to depressed prices since the end of 2014.
In the short term, the potential of gold rise seem limited. “If the ECB act on market expectations then it will lead to a surge in demand for risky assets on Thursday, the demand for safe-haven assets like gold could fall back,” said Fawad Razaqzada, technical analyst at Forex.com
Technically, gold in today’s trading session on Thursday (01/22) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1288.90 and re-test the maximum level of 1283.10. However, if the price of gold is able to break and hold above 1291.90, the estimated price of gold could potentially test the 1292.70 and 1294.72 resistance.
